The Emotional Intelligence of Successful African American Entrepreneurs2018
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This is to certify that the doctoral dissertation by
Breanna Johnson
has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made.
Review Committee Dr. Richard Schuttler, Committee Chairperson, Management Faculty
Dr. Kerry Mitchell, Committee Member, Management Faculty Dr. Anton Camarota, University Reviewer, Management Faculty
Chief Academic Officer Eric Riedel, Ph.D.
Walden University 2018
by
BS, DeVry University, 2012
of the Requirements for the Degree of
Doctor of Philosophy
African American entrepreneurs in Houston, TX, lack the emotional intelligence required
to be self-employed and remain in business. The purpose of this qualitative interview
study was to gain a robust understanding of what strategies African American
entrepreneurs can adopt to increase emotional intelligence, which will aid them in
remaining in business beyond the first 5 years. The central research question focused on
common understandings of the strategies African-American entrepreneurs in Houston,
TX, adopt to increase their emotional intelligence such that it contributes to them
remaining in business beyond the initial 5 years. The conceptual framework that
grounded the study was the emotional intelligence theory. Data were collected from
semi-structured interviews with a purposeful sample consisting of 15 African American
entrepreneurs from Houston, TX who have been in business for a minimum of 5 years.
The interviews consisted of open-ended questions. A thematic analysis was conducted
on 15 interviews. Eight themes were developed from the data analysis: emotional
intelligence, leadership styles, emotional reactions, maturity level, training, business
sustainability, communication, and flexibility. Consistent emotional intelligence training
emerged as useful in African American entrepreneurs’ business sustainability. The
potential implications for positive social change stem from African American
entrepreneurs developing more sustainable organizations. The findings of this study may
be used by stakeholders and organizational leaders to provide the opportunity to build
more emotionally intelligent organization.
by
BS, DeVry University, 2012
of the Requirements for the Degree of
Doctor of Philosophy
Dedication
This dissertation is dedicated to almighty God for guiding me during the entire
duration of this doctoral program. I would also like to thank my husband, Calvin
Johnson, and my children, Sidney, Skyler, and Caleb for being a constant motivation and
reminder of why I started this journey. Lastly, to my parents, Deborah and Wilbert
Allums, for being there for me throughout my entire academic journey. Thank you so
much for your support, encouragement, and prayers, which sustained me during the entire
doctoral journey.
Acknowledgments
I would like to express my sincere gratitude to Dr. Richard Schuttler for his
valuable mentorship during the entire doctoral process and provision of timely and
valuable feedback towards the completion of my dissertation. My profound appreciation
goes to my committee member, Dr. Kerry Mitchell, for her constructive feedback,
knowledge, and expertise that facilitated the acquisition of my doctorate. Thank you all
for your support and guidance. I also would like to take this opportunity to sincerely
thank all the research participants for graciously volunteering to be included in the study.
The research project would have been impossible without your participation. I am also
genuinely appreciative of all the support and encouragement from my husband, Calvin,
my children, Sidney, Skyler, and Caleb, and my parents Deborah and Wilbert; and peers
from Walden University.
Background of the Study ...............................................................................................2
Limitations ............................................................................................................ 11
Summary and Transition ..............................................................................................13
Leading Edge Models ........................................................................................... 30
Entrepreneurial Leadership Styles ........................................................................ 33
Data Analysis Plan .......................................................................................................58
Interpretation of Findings ............................................................................................85
Emotional Intelligence .......................................................................................... 86
Leadership Styles .................................................................................................. 88
Secondary Themes ................................................................................................ 89
Implications for Theory ........................................................................................ 96
Implications for Practice ....................................................................................... 96
Appendix D: Details of Field Experts Consulted ............................................................123
Appendix E: Responses from Field Test Experts ............................................................125
Appendix F: Interview Protocol.......................................................................................126
List of Tables
Table 1. Demographic data of the 15 Participants of the Study ....................................... 65
Table 2. Themes Emerged from 5-10 years of Employment ............................................ 72
Table 3. Themes Emerged from 11+ years of Employment ............................................. 73
Table 4. Coded Themes .................................................................................................... 77
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Chapter 1: Introduction to the Study
Entrepreneurship is a dominant force for creating wealth, enhancing the economy,
and bringing about innovation in not just the United States, but the world (Glaeser, Kerr,
& Kerr, 2015). The African American population is one of the fastest growing
entrepreneurial groups in the United States, increasing at a rate of 9% (Alsaaty, 2013).
However, the primary downside for all business owners is sustaining a new business
(Mora & Dávila, 2014). This challenge is more prevalent in the African American
entrepreneur community. Researchers have shown that African American entrepreneurs
have the capabilities to have a positive impact on the U.S. economy by ameliorating
social negatives such as unemployment, poverty, and crime (Crump, Singh, Wilbon, &
Gibbs, 2015).
It is beneficial to explore cases and strategies that have supported business
sustainability in the ever-changing business environment (Reuben & Queen, 2015).
Doing so can create a foundation for future research. From interviews, I gained a shared
understanding of experiences and strategies of African American entrepreneurs who have
been successful past the first 5 years to identify common themes associated with their
leadership styles and levels of emotional intelligence. Leaders and educators from many
industries may consider the findings of this study a valuable addition to the existing body
of knowledge regarding entrepreneurship and emotional intelligence (Ma, Zhao, Wong,
& Lee, 2013). Consequently, the findings of this study will be incorporated into future
teachings and business practices to promote sustainability in minority entrepreneurship.
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Chapter 1 includes the background of African American entrepreneurship,
problem statement, purpose of the study, research question, and significance of the study.
Qualitative researchers who have conducted studies on emotional intelligence have
concluded that taking a more structured approach to being aware of one’s own emotions
and reactions can contribute to business success (Savel & Munro, 2016). Individuals
engaging in business activities without the support of a structured emotional intelligence
approach are a concern because they do not possess the tools to achieve sustainability.
Background of the Study
Historically, African American success in business stemmed from tailoring the
enterprise to the needs of their own African American communities. In the early 1900s,
African American entrepreneurs such as Booker T. Washington firmly believed that the
more African Americans who owned a business, the more likely an increase in African
American economic power would occur (Boyd, 1991). This economic power started to
come into fruition when the African American community moved south post World War
II. Legislators passed the Civil Rights Act in 1964, that helped lead to some of America’s
largest African American-owned businesses produced revenues of over $473.4 million in
1972.
Following those gains, the Small Business Innovation Development Act of 1981
was able to aid African American business owners in securing federal contracts in 1981
(Boston, 1999). Although this was a step in a positive direction, the profits secured by
African American businesses were never comparable to those of other race groups by
only making up 11.3% of the revenue. African American owned businesses demonstrated
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the worst outcomes of all ethnic groups with a closure rate of 39% within the first four
years of business (Fairlie & Robb, 2007).
Productions are all pillars of the African American business community. Feldman
(2017) revealed that Black Enterprise, Radio One, and Harpo. However, while the
success of those organizations should not go unacknowledged, these companies are an
exception to a very alarming failure rate of minority owned businesses. By examining the
interdependent relationships between African American business owners, emotional
intelligence, and leadership styles, researchers have identified a need for more effective
strategies to aid sustainability for African American-owned businesses (Miles, 2013).
Leaders utilize emotional intelligence in developing viable leadership skills. Shinnar et
al. (2013) stated that emotional intelligence has become a measure for recognizing
effective leaders, and Dabke (2016) posited that emotional intelligence is a critical
component in influencing leader performance. The development of emotional intelligence
in African American entrepreneurs could therefore lead to increased business success.
This study may result in social change by using the lived experiences of successful
African American small business owners to help other African American entrepreneurs
develop meaningful strategies to increase emotional intelligence and promote company
sustainability.
The information in this study will assist African American entrepreneurs in
identifying strategies that can mitigate obstacles critical to business sustainability and
help them develop tools that lead to greater emotional intelligence. Emotional
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intelligence is an essential factor for success in leadership in diverse working
environments.
Problem Statement
The general problem is that there is no formal emotional intelligence training used
by minority entrepreneurs in the United States; this lack of training contributes to a high
failure rate within the first 5 years of business (Bagshaw, 2000). This may be attributed to
a lack of awareness of the various trainings that are available. Minority entrepreneurs
have a failure rate of 88% in new business start-ups (Miles, 2013). Approximately 12%
of minority-owned businesses in the United States have remained in business beyond the
first 5 years (McManus, 2016). The specific problem is that some African American
entrepreneurs in Houston, TX, lack the emotional intelligence required to be self-
employed and remain in business beyond the first 5 years (Cronin, 2014). There has been
a lack of new research concerning the drastic drop of business that make it beyond the
first five years that contributes to approximately a 6% difference between general
business failures and those of African Americans. In this qualitative interview study, I
interviewed 15 African American entrepreneurs whose businesses have survived beyond
the initial 5 years.
Purpose of the Study
The purpose of this qualitative interview study was to gain a robust understanding
of what strategies African American entrepreneurs adopt to increase their emotional
intelligence and remain in business beyond an initial 5 years in Houston, TX. By gaining
an in-depth understanding of the experiences of current minority entrepreneurs, the
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failure gap for others in the future may be reduced. An in-depth understanding could aid
new minority entrepreneurs to experience success. I purposely sampled 15 minority
entrepreneurs in Houston, TX, with open-ended questions in semistructured interviews
and gained a shared understanding of their levels of emotional intelligence and how
emotional intelligence has impacted their success.
Research Question
RQ: What are the common understandings of the strategies African American
entrepreneurs in Houston, TX, adopt to increase their emotional intelligence such
that it contributes to them remaining in business beyond the initial 5 years?
Conceptual Framework
Choosing a conceptual framework involves developing significant research
questions, selecting particular theories as they relate to the research topic, and connecting
the RQs to the theories (Ravitch & Carl, 2016). In this study, the conceptual basis was
drawn from Salovey and Mayer’s (1990) emotional intelligence theory. This theory was
used to inform the problem statement, the purpose of the study, the research question, and
the interview questions I used to explore and understand the drastic drop in African
American entrepreneurs and their business sustainability beyond the initial 5 years.
Wagner (2013) believed that an in-depth understanding of emotional intelligence could
influence an acknowledgment of its relations and effects. In this study, I explored
emotional intelligence strategies that African American entrepreneurs can adopt to
become more effective leaders. Goleman (1996) argued that emotional intelligence
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leaders in handling more demanding leadership roles.
Besides the emotional intelligence theory, I also utilized Hersey and Blanchard’s
(1977) situational leadership model. I utilized the emotional intelligence theory when
trying to understand that adequate and appropriate leadership is highly dependent on the
situation. The foundation of this specific leadership model is that no one leadership style
will be appropriate for every situation and circumstance. Finding the appropriate
leadership style depends on a leader’s emotional intelligence ability. Also, a successful
leader has to be able to adapt when applying leadership as well as recognize the role that
emotional intelligence has on the success of any particular leadership style. This study
involved examining the various levels of emotional intelligence in minority entrepreneurs
and assessing the influences that it has on the leadership styles and success of those
individuals.
Nature of the Study
I used a qualitative research method used in this study. Park and Park (2016)
asserted that qualitative methods focus on applied and theoretical findings based on
research questions. The qualitative method was most suitable for this study because the
central concept being explored was African American entrepreneurship, and the
qualitative analysis method can provide an in-depth understanding of a case. The
qualitative interviewing of the individuals helped to provide insights on events that I had
never experienced. In qualitative studies, the researcher can create a depiction of complex
processes from each separate interview (Turner, 2010).
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Quantitative research was not an appropriate methodology for this study because
quantitative research addresses a relational, causal, or predictive type of research question
and deals with operationalization. The goal of quantitative research is to collect
numerical data to explain a phenomenon (Ludwig & Johnston, 2016). The aim of this
study was not to test the effect of an action or the relationship between two variables;
also, there was not a hypothesis to be tested for acceptance or rejection. The aim was to
reveal strategies that can be implemented by African American entrepreneurs in order to
increase their emotional intelligence and their business sustainability.
The design of this study was a qualitative interview study. Edwards and Holland
(2013) asserted that a qualitative interview study could help the interviewee, as well as
the interviewer, learn more about a specific aspect of themselves and the other. This
design was used to gain a robust common understanding of the relationship that
emotional intelligence has with leadership styles and the success of African American
entrepreneurs. The experiences and views of different African American entrepreneurs
constituted qualitative data collected from open-ended questions in semistructured
interviews. Qualitative interview studies allow a researcher to identify the commonalities
between those interviewed to gain a deeper insight into the participants’ experiences
(McNamara, 1999). A qualitative interview study was the appropriate method of inquiry
to aid in understanding the aspects of emotional intelligence development in African
American entrepreneurship and the strategies used to foster that development.
I used the qualitative interview design to uncover the meanings of participants’
experiences. The chosen approach was preferred over ethnography, phenomenology, and
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the grounded theory approach. Ethnography was not suitable for this study because the
study did not deal with the social behavior of the group but rather was an inquiry into the
knowledge of emotional intelligence of African American entrepreneurs in Houston, TX.
Phenomenology was not suitable for the study as this approach is used to identify and
report in depth the lived experiences of a common phenomenon for multiple individuals
(Enger & Lajmodiere, 2011). Grounded theory was not suitable because the purpose of
this study was not to create a new theory.
Definitions
African American business owner: An African American who holds 51% or more
of stock interest, claims, or rights in a company (Smith & Tang, 2013).
Attachment theory: The behavioral theory of attachment states that the child
becomes attached to the mother because she fed the infant (Cherry, Fletcher, and
O’Sullivan, 2013).
adjustments and development within a business or other organization (Gelaidan, Al-
Swidi, and Mabkhot, 2017).
Creative leadership: Creative leadership refers to the development and realization
of innovative ideas through the shared ambition of improving the world through
enterprise formation (Sohmen, 2015).
Emotional intelligence: Emotional intelligence refers to a person’s processing
ability represented by five qualities: (a) being aware of emotions, (b) identifying own
emotions, (c) identifying others’ emotions, (d) managing own emotions, and (e)
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expressing emotions adaptively, as measured by the Emotional Judgement Inventory
(Rajagopalan, 2009, p.11)
Entrepreneur: An entrepreneur is a creator, owner, or perhaps manager of a small
firm (Kovalainen & Osterberg-Hogstedt, 2013)
Self-awareness: Self-awareness is the ability to monitor feelings from moment to
moment (Goleman, 2005).
Situational leadership: Situational leadership refers to when leaders or managers
of an organization must adjust their style to fit the development level of the followers
they are trying to influence (Hersey & Blanchard, 1977).
Social awareness: Being aware of the problems that different societies and
communities face on a day-to-day basis and being conscious of the difficulties and
hardships of society constitutes social awareness (Salovey & Mayer, 1990).
Business sustainability: Business sustainability refers to the condition of
businesses that have survived a minimum of 4 years or more after the initial start-up
phase (Raudelinien, Tvaronaviien, & Dzemyda, 2014).
Assumptions
An assumption is a statement that is a realistic expectation of something the
researcher expects to be true but that is unverified (Burgos & Mertens, 2016). Therefore,
assumptions have the potential to aid in developing and implementing the research
process. The research study contained several assumptions. The first assumption was that
the participants would answer the interview questions honestly. The second assumption
was that the qualitative interview design was the appropriate design for the study. The
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third assumption was that conducting the study in Houston was a large enough
geographical area to provide data for the study. The final assumption was that the
participants would have a sincere interest in participating.
Scope and Delimitations of the Study
The scope of the study provided the boundaries of the study (Giustina &
Gianluca, 2014). In this study, the boundaries were a sample population of African
American entrepreneurs. These entrepreneurs were using their experiences and
entrepreneurial skills to remain in business beyond the initial five years. The participants
in this study were African American entrepreneurs from Houston, TX. The participants
were asked a series of open-ended questions in semistructured interviews. In order to
address transferability of the study, I offered a thorough explanation of the findings of
this study as well as detailed descriptions that could potentially allow the readers and any
further researchers to make informed decisions about the concerns of transferability of
the findings to African American entrepreneurs who have remained in business beyond
the first 5 years.
Delimitations are defined in research as the boundaries that specify the inclusions
and exclusions of the study (Fan, 2013). As a result, delimitations can narrow the scope
of the study. The first delimitation was the use of the small business category. The
interview study consisted of multiple African American businesses that have been
established and remained in business beyond the initial 5 years. The study was also
delimited by the geographic area of the participants’ ownership of the business being
located in Houston, TX. I delimited the focus of the study to a business that demonstrated
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sustainability beyond the first 5 years. Lastly, selecting only African American
entrepreneurs was a delimiting factor.
Limitations
Limitations of a study are focused on internal and external validity (Connelly,
2013). A potential limitation of a research study can include time restraints of the
interviews with the participants. Another limitation could be misinformation coming
from the participants due to lack of understanding of the purpose of the study. Participant
bias is also a concern in every study. I upheld the integrity and responsibility for
reporting any of these limitations that became present in this study.
Significance of the Study
This research was essential to understanding the content and context of emotional
intelligence needed to help future African American entrepreneurs remain in business
beyond the first 5 years, as well as to apply the behaviors and skills intended to create
value for African American entrepreneurs. McMansus (2016) believed that the high
African American entrepreneurial failure rate suggested that there is a societal need for
more efficient and prepared African American entrepreneurs to help provide innovative
solutions to many of the social needs and business problems. The need for emotional
intelligence is becoming vital to entrepreneurial success (Liu, 2012).
Significance to Practice
The results of the research could potentially be useful to scholar-practitioners and
researchers regarding the professional application of research findings as well as
recommending strategies that can be used in everyday activities for decreasing the
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African American entrepreneurial failure rate. The results may lead to the generation of
information for entrepreneurial skill training programs. The results may also be
substantial for leaders of the community, region, state, or country at various levels of
authority. The study may also show how a leader’s commitment to understanding the
competencies of emotional intelligence could lead to a creation of employment that can
empower and motivate minority entrepreneurs to contribute to the national economic
growth and entrepreneurial skill development. Lastly, the study may benefit the field of
management by helping to develop a new theory that can assist organizations to more
accurately address African American leadership styles and emotional intelligence
development.
Significance to Theory
The existing literature on entrepreneurship has not included the lack of knowledge
on the emotional intelligence required for self-employment in Houston, TX. The research
findings from the study may reveal additional information regarding how African
American entrepreneurs have used their emotional intelligence to become self-employed.
Leadership scholars may find the information useful for a closer look at the emotional
intelligence development as a means for resolving the minority entrepreneurs’ failure rate
and offering opportunities for growth and development. The results of this research may
be beneficial to the management of educational institutions as they help leaders to
identify and understand the differences in strategies amongst minority entrepreneurs
versus nonminority businesspersons.
Significance to Social Change
The research findings from the study have a potential to impact positive social
change in the lives of people of Houston, TX, because the data collected in the study
could help to address the high failure rate of African American entrepreneurs in the small
business sector in Houston, TX. The data can potentially help lead to a shift in paradigm
as it may decrease the failure gap of minority entrepreneurs. Any new standard developed
would help serve as an initiative towards the development of entrepreneurial skills and
attitude.
Summary and Transition
Theorists believed that there is no best way to lead. Emotionally intelligent
leaders possess individual strengths such as self-awareness, ability to manage emotions,
ability to motivate others, and empathy. A combination of emotional intelligence and the
appropriate leadership styles can be utilized to create a sustainable business environment.
The goal of this study was to add insight to African American entrepreneurship by
attempting to understand the correlation between emotional intelligence and appropriate
leadership styles in an entrepreneurial environment. An assessment of entrepreneurs’
leadership styles has the potential to increase the entrepreneurs’ emotional intelligence,
which could aid them in handling diverse critical situations and increase the overall
sustainability of the organization. Organizational sustainability may improve due to the
entrepreneurs’ ability to deconstruct the needs of employees, which could lead, in part, to
more effective decision making.
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In Chapter 1, I presented an overview of the study including the theoretical
support for the current research. Evidence from the literature validated the need for an
investigation into entrepreneurs’ emotional intelligence and appropriate leadership styles.
The literature review in Chapter 2 enhances the reader’s understanding of concepts that
were presented in Chapter 1. Research presented in the literature review clarifies the
impact of emotional intelligence and leadership styles on business sustainability.
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Chapter 2: Literature Review
The literature review was a critical essay of synthesized ideas concerning
organizational leadership styles and emotional intelligence. Various leadership styles
were evaluated and compared against other viewpoints. Several leadership methods were
explored in order to give a clearer view of different interpretations of leadership.
Viewpoints on how a manager’s leadership style can potentially have a relationship with
emotional intelligence were examined as well.
Sources for this study were located in several databases with substantial
differences being found in a combination of the key words: emotional intelligence,
leadership styles, entrepreneurship, situational leadership, change management,
attachment theory, and creative leadership. The following databases were searched for
this literature review: Academic Search Premier, Business Source Complete, ABI/Inform
Collection, and ProQuest.
The literature search for references on increasing emotional intelligence in
African American entrepreneurs indicated this was not a frequently explored concept.
Simple searches of peer-reviewed journals and articles evolved into searches across a
broad range of topics. Emotional intelligence, leadership styles, attachment theory,
situational leadership theory, and entrepreneurship were terms and topics researched.
This chapter includes the specific problem and the purpose of the research, the literature
search strategy, theoretical and conceptual foundations, and a review of historical and
recent literature relevant to emotional intelligence and leadership styles of African
American entrepreneurs.
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The intent of this qualitative interview study was to explore what level of
emotional intelligence and leadership styles were needed for African American
entrepreneurs to remain in business beyond the initial 5 years. Emotional intelligence and
leadership styles that positively impact performance and sustainability were explored
through a qualitative interview method and design by studying entrepreneurship in
African American owned small businesses in Houston, TX. Appropriate levels of
emotional intelligence and leadership styles provide African American entrepreneurs
with the tools and strategies to have a positive influence on sustainability, which may
reduce African American business failure rates (Furlan, Grandenetti, & Paggiaro, 2014).
Existing literature pertaining to entrepreneurship has failed to include knowledge
on the emotional intelligence necessary to be self-employed in Houston, TX. The
findings of this study revealed additional information regarding how African American
entrepreneurs have used emotional intelligence to become self-employed. Scholars of
leadership may find the data useful for a closer look at emotional intelligence
development as a resource to resolving the minority entrepreneurs’ failure rate and
suggesting a new perspective for growth and development. The results of this research
will be beneficial to the management of educational institutions as it helps leaders to
identify and understand the differences in strategies amongst minority entrepreneurs
versus nonminority businesspersons.
Literature Search Strategy
Building on the steps recommended by Rubin, Rubin, Piele, and Haridakis
(2010), I used the following six steps in the literature search for this study.
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1. Identify types of required sources.
2. Leverage networks of specialized professionals to expand access to data
sources.
4. Develop and conduct iterative key word and phrase searches.
5. Cross-reference standard primary sources.
6. Select, evaluate, and summarize sources.
Conceptual Framework
The definition of emotional intelligence is having an understanding of how the
consequences of our actions have an effect on ourselves and people around us (Tapia,
2001). The primary conceptual base for this study was Salovey and Mayer’s (1990)
emotional intelligence theory. The scope of the emotional intelligence theory involves
understanding the influence that appropriate leadership styles can have on a situation.
Emotions are the responses to an event (Mayer, Caruso, & Salovey, 2016). Emotions may
dictate how people interact with one another. The concept of emotional intelligence
involves an individual’s ability to identify emotions as well as identify the situation or
circumstances from which the emotions originally stemmed (Mayer et al., 2016). The
entrepreneurial world introduces many instances that can be identified as diverse or
complex. In such cases, self-awareness of emotions can allow a person to more
effectively manage the situation. Researchers such as Simmons and Simmons (1997) had
done extensive research on the characteristics of emotional intelligence and as a result
created the Simmons Personal Survey. The survey is a self-examination of emotional
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intelligence. The survey provides insight into a person’s approach to change and risk-
taking.
Emotional intelligence was also referred to as heart-based leadership by many
researchers. Emotional intelligence research continues to serve the purpose of exploring
the impact of emotional intelligence on leadership effectiveness. Baesu and Bejinaru
(2015) argued that the values of an organization are found in the employees. The level of
emotional intelligence helps a leader to think more positively, which devolves to the
employees. Leaders also have a variety of options on their chosen leadership style based
on personality traits. Cabello, Sorrel, Fernandez-Pinto, Extemera, and Fernandez-
Berrocal (2016) measured emotional intelligence ability by using the Mayer-Salovey
Emotional Intelligence Test. The authors then took those results and explored the
differences between men and women. The conclusion of the cross-sectional study
revealed that both gender and age influence emotional intelligence ability during aging.
Literature Review
Tyler (2015) highlighted the works of Goleman in the article “What Makes a
Leader.” In this article, he described the five components of emotional intelligence.
These components include self-awareness, self-regulation, motivation, empathy and
social skill. Tyler outlined the effect of training on the emotional intelligence program
participants. Tyler compared the emotional intelligence of PLA graduates and
pharmacists just entering the program. The emotional intelligence of participants was
assessed in five domains: self-perception, self-expression, interpersonal skills, decision
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making, and stress management. The results revealed that graduates had higher levels of
emotional intelligence than nongraduates.
Ackley (2016) discussed the evolution of emotional intelligence over the past 25
years. Three of the most popular models were compared and contrasted as well as the
assessment tools used to measure each model. The author also presented sample
applications of emotional intelligence such as in the workplace and in personal
interactions. From the study, Ackley was able to conclude that emotional intelligence can
be increased and does not remain stagnant based on your experiences and what you learn
from the experiences of others. Ackley believed that emotional intelligence will be a
powerful tool in delivering psychological expertise in many forms to organizations. The
research presented in the article was valid and reliable because it supported a wide range
of emotional intelligence aspects.
Emotional intelligence plays an important role in stress reduction, performance
enhancement, and an improvement in strategic capabilities. Ghosh and Rajaram (2015)
found that 75% of business success is driven by emotional intelligence. Emotional
intelligence is considered to be a requirement in today’s chaotic business environment.
Ghosh and Rajaram were looking to prove the hypothesis that emotional intelligence
influences entrepreneurial skills such as decision making, motivation, leadership, risk-
taking, and creative abilities. The authors also found that entrepreneurship is a major
catalyst in economic development. The authors were able to use the results to show that
there is a significant influence of emotional intelligence in entrepreneurial abilities. The
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findings helped to develop a possible route towards the use of emotional and
psychological abilities of entrepreneurs in entrepreneurship development.
Emotional intelligence plays a major role in leadership effectiveness. In one
study, Dabke (2016) focused on the relationship between performance-based emotional
intelligence and transformational leadership. The data was collected from 200 managers
who were given the Mayer, Salovey, and Caruso Emotional Intelligence Test. The author
then performed a Pearson correlation in order to reveal a significant relationship. The
results showed that emotional intelligence did not emerge as a predictor of leadership
effectiveness. The author also presented a review of past literature pertaining to
emotional intelligence. In relation to transformational leadership, the author believed that
high emotional intelligence indicated the presence of a transformational leader. Dabke
presented four different hypotheses. All of these were geared towards examining the
relationship between performance-based emotional intelligence and transformational
leadership.
There are three categories of leadership qualities in business: (a) translating
company goals into sharable visions, (b) knowing how to influence employees to share
those visions, and (c) motivating followers to work together to build the visions. Wagner
(2002) provided a qualitative study of the impacts of emotional intelligence on leadership
styles. Wagner used items such as Stogdill’s Leadership Behavior Description
Questionnaire and the Bass and Avolio Multifactor Leadership Questionnaire in order to
measure effective leadership. The author formed a measurement model to establish casual
connections. Additionally, the author compared leadership measurements. The
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researchers on emotional intelligence found that it enhances intellectual stimulation. The
author discovered that leadership can be defined as goal-oriented, influence-oriented,
vision-oriented, and coordination-oriented. This study is relevant to the current research
because it defined the impact of effective leadership and identified which other abilities
might be important. Wagner acknowledged that emotional intelligence and motivation
have to be measured in order to understand irrelations and effects. In discussing effective
leadership, Wagner explained that personal vision and external relations are skills needed
to formulate the company’s vision. This piece is useful to entrepreneurs as it discusses
the necessary skills needed to successfully improve leadership effectiveness. However,
more information should have been provided to determine how this changes based on
demographics.
Relationship Management
The people who utilize emotional intelligence have the ability to manage
emotions of others through restraint and understanding (Goleman, 2005). In order to have
the capability of managing the emotions of others, a person must establish the precedent
through daily interactions. When there are instances of conflict or opposing viewpoints, a
manager who is aware of how to manage relationships will find it easier to direct and
reinforce the behavior of others. Fehr, Herz, and Wilkening (2013) explained the role that
authority and power have in the political, social, and economic spectrums of life. The
authors studied the incentives that motivate employees and what drives them to put effort
into their tasks at work and found a gap in the literature.
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There are many aspects and characteristics to being an effective leader. Fehr et al.
(2013) described a theoretical motivation where a four-stage game is used. The model of
authority that was developed by Aghion and Tirole (1997) highlighted the hierarchical
structure of an organization and how the principal and agent relationship affects decision
rights. The first stage includes the leader choosing to maintain all decision making rights
or assigning them to a specific person or group. The second stage is where both parties
come together and gather information. The third stage includes the subordinate
suggesting a plan for moving forward. The last stage is when the leader implements the
plan. The results suggested that the leader or authority has a direct effect on motivation.
The authors also determined that genuine distaste for being overruled is a substantial
determinant of the desire to retain control. The results of the study support the notion that
how a person leads and uses the power that they have can have a direct impact on the
relationships that are upheld in the organization. In other words, how power and authority
are used not only reflects on how emotionally intelligent a leader is, but also has
implications for the longevity of the business as a whole.
Social Awareness
The definition of empathy is the ability to comprehend someone else’s feelings
and re-experience those emotions for themselves (Salovey & Mayer, 1990). The more in
tune an individual is with his/her own feelings, the easier it is to have empathy for the
circumstances of others. Also, understanding the emotions of others helps to create bonds
amongst personnel, which can result in a more productive work environment. In the
instance of having numerous emotionally intelligent people together, Salovey and Mayer
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(1990) believed that these individuals will have a better chance of empathetic and
supportive. Goleman (2005) suggested that a person’s nonverbal expressions such as tone
of voice, gesture, and facial expressions can help you to read an individual.
Self-Awareness
The ability to monitor feelings from moment to moment is defined as self-
awareness (Goleman, 2005). It is responsible to assume that someone’s emotions can be
revealed by simply observing someone. However, through monitoring of those emotions
may reveal otherwise. Individuals can become overwhelmed by their emotions and feel
helpless to escape them, causing them to remain in a situation with anxiety, anger, and
depression. Goleman (2005) believed that a person who is self-aware is able to handle
his/her emotions in order to be independent, and display a positive demeanor regarding
life. Effective leaders assess their emotional abilities and accept constructive criticism
which builds confidence and gives them a better outlook on their capabilities.
Situational Leadership Model
Situational leadership theory was originally referred to as the “Life Cycle Theory
of Leadership” (Hersey & Blanchard, 1977). The change stemmed from relabeling
follower maturity, willingness and commitment, and ability. Past research revealed that
leaders play a significant role in the overall situational leadership theory proposes the
idea that an effective leader must possess a rational understanding of a given situation as
well as an appropriate response to the situation (McClesky, 2014). The situational
leadership model transpired from the task-oriented versus people-oriented continuum.
The roles of leadership overlap and are not always as clear as they appear to be. Over the
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past few decades, there has been a shift from a hierarchical organizational structure to an
open leadership model. There had been a very lively debate in regards to the evolution of
management (Hersey & Blanchard, 1977).
The basis of the situational leadership model supports the fact that the maturity of
an employee will dictate the type of power base a leader will need. Hersey and
Blanchard’s (1977) developed the model and utilized it when trying to understand that
effective and appropriate leadership is highly dependent on the situation. The foundation
of this specific leadership model is that appropriate leadership styles are circumstantial.
Also, a successful leader has to be able to adapt when applying leadership and recognize
the role that emotional intelligence plays in choosing the appropriate leadership style to
address a specific circumstance. This study will involve examining emotional intelligence
in minority entrepreneurs and assessing the influences that it has on the leadership styles
and success of those individuals. The situational leadership theory (SLT) advocates for
the need to vary your leadership style based on the skills and abilities of the subordinates
(Chaneski, 2016). The SLT consists of four different leadership styles. The four styles
illustrated as directing, coaching, supporting, and delegating. The directing style includes
high directive and low supportive behavior. The coaching style includes highly directive
and highly supportive behaviors. The supporting style includes highly supportive and low
directive behavior.
Lerstrom (2008) explored the situational leadership model being used in academic
advising sessions. The author argued that the leadership style of an effective leader has to
match the maturity level of the followers. The results of the case study revealed that as
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students were developing confidence in their abilities, the advisor could focus on more
pressing issues and be more direct with the students. Smith (2013) discussed a study were
the situational leadership model would be applied to police officer field training. The
situational approach was applied based on the directive and supportive behavior of a field
training officer.
A facet of the situational leadership model is the transformational and
transactional leadership styles. Both of these leadership styles are associated with various
organizational outcomes. These outcomes include satisfaction at work, commitment to
work, and productivity (Rodriguez & Ferrera, 2015). Any of these types of behaviors can
be described as individual discretionary acts that may not necessarily be acknowledged
by the organization's reward system. The core characteristics of a transactional leader are
one who clarifies goals and displays rewards and punishments associated with the
achievement of these goals. Rodriguez and Ferrera (2015) discussed a study that predicts
the organizational citizenship behaviors. However, transformational leadership focuses
on the individual needs of the subordinate and also encourages them to target their
interest and aspirations towards the organization's goals.
Attachment Theory
Cherry et al.(2013) used the attachment theory for the study of emotional
regulation. An individuals’ attachment style is developed during early childhood. An
attachment style can be simply defined as the emotional bond between individuals based
on the expectation that both members can provide the need of the other. Attachment
styles can trickle into adulthood and can exhibit various patterns such as generalized
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thoughts, feelings, and expectations. There are two levels of the attachment theory:
attachment anxiety and attachment avoidance. An individual’s emotional intelligence
influences their ability or inability to communicate effectively. In other words, it is safe
to conclude that individuals with higher emotional intelligence portray appropriate
emotional reactions in comparison to someone with low emotional intelligence.
There are four dimensions of the attachment theory that are very central issues to
the topic (Groh, Fearon, Van IJzendoom, Bakermons- Kranenburg, & Roisman, 2017).
The first central issue is the role that the environment has on attachment. The second
central issues are the patterns that attachment can create. The third central issue is the
stability of the attachment patterns. The last central issue is how attachment affects
someone’s ability to adjust. Since the discovery of the attachment theory by Bowlby
(1969) there was an increased interest in the role that attachment has on describing and
interpreting phenomena in the work environment. Scrima, Di Stefano, Guarnaccia, &
Lorito (2017) believed that there are strategies and methods that can be used to adjust the
attachment styles of an individual. Place attachment can be described as an effective bond
or link between people and specific places.
There are four different adult attachment styles which are secure, preoccupied,
dismissing, and fearful attachment (Bartholomew & Horowitz, 1991). The attachment
theory is known as the best-established framework in regards to interpersonal
relationships (Berson et al., 2006). Attachment styles have an effect on every relationship
that a person can engage in, including work relationships.
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Change Management
Gelaidan et al. (2017) argued that an effective leader exercises change
management to achieve the required organizational results. Leadership plays a vital role
in organizational change and sustainability. Effective leader’s behavior has the ability to
direct and determine employees’ attitudes towards the success of the organization. This
notion connects directly with emotional intelligence. A leader needs to possess the ability
to promote emotional and intellectual growth.
Any organization is ultimately looking for breakthrough results. These types of
results can take on many forms. Some examples include: greater profitability, increased
market share, faster cycle times, improved customer satisfaction, and enhanced product
innovation (Anderson & Ackerman, 2010). The most beneficial thing a leader should put
their energy towards would be leading change. This can lead to financial and cultural
benefits that ultimately have a positive impact on the sustainability of the business.
There are various levels of success based off of the changes that occur within the
organization. To increase the level of success a change strategy must be produced
alongside a process plan to match these efforts. It is apparent that change does not just
happen. There are particular drivers of change that establish a context for the change to
actually happen. Anderson and Ackerman (2010) listed the drivers of change as follows:
• Environment
• Leader and employee behavior
• Leader and employee mindset
Some of the challenges to organizational change is that the leader and/or
employees can be highly resistant to it. There are two ways for change behavior to be
conducted. One way is through informational strategies or a change to the structure where
the behavior takes place (Gifford, Kormos, & McIntyre, 2011).
Traditional Models of Change
Traditional models of change take a “top down” approach. The ultimate goal of
these models was to develop skills that would aid in identifying, planning, and
implementing service improvement. As a result, this can increase networking
opportunities and boost personal and professional development.
Lewin’s model of change. Lewins (1950) created the original model of change.
Lewin identified aspects that generate change such as external factors, internal factors,
economic factors, and social factors (Angel-Sveda, 2012). These ideas stemmed from the
belief that every individual has certain preferences that they act within. This can be called
their “zones of safety”. The process of change includes three stages. The first stage of
change is unfreeze. This is where individuals consciously and unconsciously resist
change. Motivational tactics must be used to get an individual past this stage. The next
stage of change is transition, where an individual or organization is learning to adapt to a
new way of thinking and responding to change. Refreeze is the final stage of change
where the individuals or organization is now operating from the new way of thinking.
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Lewin believed that change is a active balance of strengths. One side puts pressure on
change and the other determines the resistance to change.
McKinsey 7-S model. Waterman, Peters, and Philips (1980) created a model that
took a more universal approach to change. The McKinsey 7-S model included 7 factors
that work collectively to contribute to change. These 7 factors include: skills, staff, style,
systems, strategy, and shared values. The model suggests that all seven parts should be
addressed simultaneously. This model also provides a method on how to identify issues
and understand how the organization can move forward.
Kotter 8 step change model. The 8 step model was created by Kotter (1995).
This model challenged employees to support change after leadership convinces them that
the change is necessary. The 8 steps of change include:
1. Increase the necessity for change.
2. Build a team committed to change.
3. Generate a vision for change.
4. Empower staff with the skills to change.
5. Create short term goals.
6. Stay determined.
7. Make the change permanent.
This model will be utilized in order to provide a gradual approach to change. This focus
is not directed at the actual change but on the preparation and acceptance of change.
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Leading Edge Models
SWOT model. The SWOT model is a framework used for analyzing internal and
external factors, opportunities, and threats in an organization. The SWOT model is used
to assist managers in creating strategies that aid the organization in coping with internal
and external factors that they are consistently encountered (Bell & Richford, 2016). As
the business environment became more complex, the SWOT model shifted to a series of
checklists. Unfortunately, the SWOT has lost its ability to reveal relationships between
internal and external factors. Managers’ behaviors and thoughts can be drastically altered
once a thorough understanding of the SWOT analysis occurs. Once a grasp is made, it is
difficult for a manager to go back to their old way of thinking and behaving. Hopefully,
this new found understanding will uncover unseen relationships that were overlooked
previously.
Leadership Theory
Traditional views of leadership have become less and less useful when
considering the complexities of the modern world. Modern-day leadership theories
challenge organizations to become more adaptive as well as develop new perspectives as
it relates to the needs of the organization. There have been many systems, practices, and
strategies proposed in order to address the constant evolution of organizational
performance. Leadership dynamics have surpassed the capabilities that one individual
can produce. New leadership practices advocate for a team environment where each
component of the organization contributes in a positive way towards the desired goals
and outcomes.
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The 21st-century leadership models assume that the very essence of leadership is
highly dependent on the characteristics of management. In other words, how
managers/supervisors respond to change can create a misguided presence at the forefront
of the organization. This can easily result in lack of innovation productivity, and
decreased organizational performance. There have been so many different definitions of
leadership established that have made contributions to the workplace environment (Bass,
1990). There are many components that are compiled together to help conceive the
concept of leadership. Factors such as personality, influence, persuasion, interactions, and
structure all determine the type of leadership that will be exerted into a given
environment. The leadership theory is one of the most complex groups of theories. A
fundamental aspect of management is understanding what effective leadership consists
of, as well as, how to develop effective leaders within the organization (Cheramic, 2015).
Although there has been much development of leadership development models, most
have failed to account for the differentiation that is present in leadership training and
development (Clarke & Higgs, 2017). There is a wide array of approaches and processes
associated with an organization attempting to secure effective leadership.
Leadership and Emotional Intelligence
Leadership is the process of influencing the behaviors of followers in order to
achieve a common goal. Goleman (2005) suggested that leaders with higher emotional
intelligence are more likely to engage in information sharing, trust, and risk-taking
amongst employees. As a result, an atmosphere where learning is accepted and employee
growth are created. In other words, a leader must increase their emotional intelligence in
32
order to create successful outcomes over an extended period of time. The most successful
organizations are those where the employees work well together and are in tune with
what the common goals are.
Goleman (2005) began the article by highlighting previous research that had
examined the relationship between emotional intelligence and transformational
leadership. One major component that was unwavering is that emotional intelligence is a
vital factor for being an outstanding leader. Goleman believed that emotional intelligence
accounts for 90 percent of what outstanding leaders are judged.
Harms and Crede (2010) concluded that the traits of a transformational leader
were similar to those of an emotionally intelligent individual. The purpose of the study
was to determine whether emotional intelligence is related to transformational or
transactional leadership behaviors and what circumstances impact these behaviors. The
methods utilized during this study included a detailed literature search. In an attempt to
ensure a high level of accuracy and rating agreement, the authors included a coding
procedure. The meta-analysis procedure allowed for the estimation of the amount of
variance attributable to sampling errors.
The results of the study revealed that the relationship that once linked emotional
intelligence with transformational leadership variables are not as strong as previous
research has advocated for. The results also revealed that the hypothesis that contingent
reward has a positive relationship with emotional intelligence. The limitations of meta-
analysis may have affected the results. There has been no well-designed study that
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the results, there are still theoretical implications for future research.
Entrepreneurial Leadership Styles
The effectiveness of the group is directly correlated with how the employee feels
about the group and the organization as a whole. Borgogni, Dello Russo, & Latham
(2011) began the article by discussing how over time organizations have become
structured teams. Collective efficacy is defined as an individual’s perception of the
group’s collective capability to successfully perform job-related tasks (Borgogni et al.,
2011). In this study, the authors investigated the relationship between collective efficacy
beliefs and the employees’ perceptions of the group’s leader. The study contributed to the
literature by examining the different contributions of group efficacy. Also, the extent to
which perceptions mediate the relationship between self and collective efficacy beliefs
was explored. The study included 1,149 participants at the middle-level managerial level.
The results of the study were done against six major factors including self-efficacy,
perceptions of IS, perceptions of TM, group collection efficacy, organization
commitment, and job satisfaction. There are some limitations to the study. There is no
measure of organizational behavior. In the future, research should examine the predictive
validity of the model.
improving employee creativity and innovation. Peng and Weichum (2011) examined the
relationships between creative identity, transformational leadership, and creativity. This
is necessary in order to obtain the competitive advantage. Innovation driven leadership
34
such as transformational leadership is key to achieving the creativity necessary. Some
researchers believed that transformational leadership may not be the overall solution for
every organization to foster innovation. Little research has been done on the dynamics
that surround transformational leadership. The authors intended on extending
transformational leadership and creativity research. Prior research indicated that both
group and individual creativity are influenced by factors that are spread across multiple
levels.
From the situational leadership theory, it can be derived that a leader’s maturity
level is a determining factor for leader behavior. Meier (2016) discussed the benefits that
integrated and blended learning provides. The study is helping to uncover appropriate
methods that will satisfy specific learning goals. The author connected these ideas to
situational leadership because of the diverse settings that learning and teaching take place
in. The author’s goal was to transfer the situational leadership theory into a learning and
teaching framework. Teaching has been found to be an intricate part of leading. The
author suggested that leaders introduce methods that can help to maintain the structure.
There are various learning goals based on maturity level. No limitations were mentioned.
No recommendations were made for future research.
Rupert, Jehn, Engen, and Reuver (2010) conducted a study where they
investigated commitment of cultural minorities and majorities in organizations. A field
study consisting of 107 employees was conducted at a multinational organization. The
researchers investigated how factors such as pressure to conform and leadership styles
affect commitment. The findings indicated that organizational leaders and researchers
35
should not only focus on increasing and maintaining the commitment of minorities but
also focus on how members react to cultural socialization and integration processes. The
author’s challenged the existing theoretical view of the similarity-attraction theory and
the relational demography theory. Past research has focused on the effects of team
diversity on group processes. The authors suggest that leaders can show confidence in
minority capacities which will result in self-efficacy. However, inconsistency can cause a
decrease in commitment. The literature analysis was extremely thorough. Although this
study was performed in 2010, the majority of the findings are still applicable. The authors
feel that future research should attempt to gain a better understanding of the influence of
socialization processes in organizations. Overall, the enhancement of commitment should
be addressed throughout the entire organization.
The cross-cultural approach studies the similarities and differences that are
present amongst the behaviors at work across cultures. Gibson and McDaniel (2010) took
into account the importance of a cross-cultural approach to organizational behavior. The
authors defined organizational behavior as the study of how processes and practices
affect individuals and groups. The authors noted that past cross-cultural organization
behavior research has focused solely on the nation. The authors address theories that
include collective cognition, attitude formation, and virtual teamwork. The review of
these theories supports the claim that organizational behavior theories vary in the extent
that they can be applied unilaterally across cultures. The authors covered the concepts of
teams, collective cognition, team attitudes, virtual teams, leadership, charismatic
leadership theory, and empowerment. Approached to effectively view cultural differences
36
were identified. Future research needs to extend into other domains to become highly
impactful and important.
Individuals can categorize and prejudge an individual or group based solely on
gender, race, culture, or sexual orientation. Eagly and Chin (2010) addressed the
weaknesses that exist in past leadership research. The lack of research has removed the
ability to address some of the more provocative aspects of modern-day leadership has
been taken away. The authors chose to address why women are under respected in
leadership roles and what is causing them to lack the qualifications needed to be
successful. They outlined the importance of knowing who is more at risk for this type of
treatment. Also, how people view these individuals is an important aspect to assess. The
rest of the article focused on leadership behaviors based on gender, race, sexual
orientation, and culture. Theories of leadership should include diversity considerations.
Human development stemmed from interactions with other individuals. The authors
revealed that certain biases exist in North America that has really highlighted certain
traits and behaviors. The expectations of a leader are constantly changing due to
demographic and intellectual changes. The requirements of a leader have become so
complex that they rely drastically on the knowledge of these concepts. This is why the
authors encouraged the empowerment of subordinates.
Creative Leadership
Creative leaders need to possess the ability to identify, articulate, and express
constraints that provoke individuals of an organization to generate creative responses.
There are certain conditions that creative leaders must adapt to in order to promote and
37
nurture the creativity of others. Keamy (2016) stated that creative leaders perform the
following tasks: Stimulating a sense of urgency, exposing colleagues to new thinking,
and experiences, providing a time and place facilitate the practicalities setting high
expectations, promoting individual and collaborative creative thinking and design, using
failure as a learning opportunity, relinquishing control, and the modeling of creativity and
risk-taking.
Creativity is not compiled of just thinking, but also the process of manufacturing
what is perceived as being innovative in tangible and intangible ways (Sohmen, 2015).
This type of leadership fuels visions creates novel ideas, crafts diverse methods, produces
innovative output. Creativity can be very beneficial to an organization if employed
constructively. Byproducts of creativity are flexibility and competitiveness. Creativity
helps to generate ideas and aid in problem-solving. Creativity is a difficult component to
measure. There are seven creative thinking skills: diagnosis, visionary, strategic,
ideational, evaluative, contextual, and tactical (Sohmen, 2015).
Moral Leadership
Due to significant and rapid technological, cultural, demographic, and economic
changes employee creativity has become a necessity in a workplace environment (Gu,
Tang, & Jiang, 2013). Employees have to continuously be challenged in order to maintain
a sustainable competitive advantage. Although, moral leadership has grown in
importance, it has been neglected in leadership-creativity relationships. Moral leadership
has a positive effect on employees’ intrinsic task motivation and trust in leadership which
has a direct correlation with employee behavior and performance. Moral leaders serve as
38
role models and exhibit characteristics such as unselfishness and self-discipline. These
individuals have a great influence on employees by possessing the ability to mold the
perceptions, beliefs, and behaviors of employees. A valuable leader-member exchange is
associated with moral leadership. When an employee has a strong, trusting relationship
with a leader they are apt to be committed to the needs of the leader. In other words, the
needs of the organization are met.
Transactional Change Leadership
As opposed to the transformational leadership style, transactional leadership is
characterized by two distinct factors. This particular leadership model includes an
employee being rewarded for reaching clearly defined organizational goals. The first
factor is the contingent reward and the second is management by exception (Holten &
Brenner, 2013). Managers have the ability to be an important change agent that can
influence and facilitate change through the employees. Transactional leadership is a more
instrumental style that gives leaders the platform to engage with the employees as change
is being implemented.
Entrepreneurship
There is not one specific definition of entrepreneurship because of its
complexities and its multiple facets (Kannadrasan, Aramvaalarthan, & Kumar, 2014).
Entrepreneurship is defined as the capacity and willingness to develop, organize, and
manage business ventures along with any of its risks in order to make a profit. A more
simplified definition of entrepreneurship can be broken down into the following phases:
prelaunch, launch phase, and a post-launch phase (Frese & Gielnik, 2014). During the
39
pre-launch phase, an opportunity is recognized. During the launch phase, the entrepreneur
executes a plan based on available resources. Lastly, during the post-launch phase, the
entrepreneur manages the endeavor in order for it to grow and sustain itself.
Entrepreneurial opportunities can promote creativity (Wooley, 2014). There is also the
potential of reducing unemployment and poverty (Alvarez & Barney, 2014).
Entrepreneurship is a business practice that is relevant all around the world. As a result, it
can catapult the creation of more jobs and overall economic growth (Smith &
Chimucheka, 2014).
Entrepreneurial Characteristics
The personal characteristics of an entrepreneur are a key component of the
entrepreneurship theory (Casson & Rugman, 2014). In conjunction with the
organization’s culture, entrepreneur characteristics have a major impact on the innovative
capabilities of a company. There is a large quantity of published studies pertaining to the
various roles of entrepreneurs. As early as 1959, Richard Cantillion published an article
that defined the differences between a landowner, entrepreneur, and employees.
Entrepreneurship has been linked to the process of innovation as a contributor to the
development of enterprises in the economy. Omerzel (2016) proposed five dimensions of
entrepreneurial orientation. These dimensions include proactiveness, competitive
aggressiveness, risk-taking, autonomy, and customer orientation. Brettel, Chomik, and
Flatten (2015) stated that studies have found that organizations with higher
entrepreneurial orientation tend to perform better.
Proactiveness. Proactiveness helps entrepreneurs to identify opportunities in a
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market. Proactiveness can be defined as an entrepreneurs’ willingness to engage in bold
moves such as introducing new products or services ahead of competitors and anticipate
any demands that may create, change, and shape the environment. Having proactive
tendencies allows an entrepreneur to attain a greater reach than their competitors. In most
cases, if a firm lacks proactiveness, they lack the market knowledge and intentions
needed to obtain opportunities.
Competitive aggressiveness. An organization that exhibits competitive
aggressiveness displays a large variety of actions to ensure that they outperform the
competitors (Giachetti, 2016). The competitive aggressiveness of an organization can
have numerous and diverse strategic and tactical manifestations. Some organizations may
employ various types of aggressive strategies in order to achieve or maintain a strong
market position. However, the disposition of the manager to take on and desire to
dominate competitors has a direct reflection on the organization as a whole.
Risk Taking. The endeavor of starting a new business is accompanied by much
uncertainty. The entrepreneurs that are most successful must engage in calculated risks.
The entrepreneurs that are most successful must engage in calculated risks. Risk taking is
synonymous with entrepreneurship. In most cases, a career, personal finances, and mental
health are at stake. Vereshchagina and Hopenhayn (2009) suggested that entrepreneurs
with a high degree of risky behavior also have a high return. Entrepreneurs have to be
calculated risk takers. Entrepreneurs attempt to reduce risks with every step they take.
Autonomy. Autonomy can be defined as freedom or independence (Gelderen,
2016). An entrepreneur motivated by autonomy has the potential to affect a range of
41
internal and external conditions and the actions of the entrepreneurs. Autonomy has been
previously identified as a unitary concept. Autonomy has a strong reference to
entrepreneurs’ decisions making in regard to what is done and how it is done. However,
there is a misconception of autonomy comes automatically with business ownership.
Autonomy is also associated with striving to develop your own goals (Gelderen, 2010).
Customer orientation. A customer-oriented approach is when the organization
focuses on helping the customers to meet their long-term goals. Customer orientation is
one of the core aspects of marketing. Therefore, it is a set of beliefs that the needs of the
customer are a priority. In most cases, customer orientation and marketing orientation are
used interchangeably. Customer orientation is referred to as the business’ philosophy that
can lead to superior performance and profitability (Racela, 2014). Entrepreneurs need to
create and deliver superior customer value to maintain sustainability.
African American Entrepreneurship
Over the past three decades, innovation alongside entrepreneurship has become a
very dynamic topic (Furman, Gawer, Silverman & Stern, 2017). Entrepreneurship aids in
creating an innovative and dynamic culture within an organization. Achtenhagen and
Price-Schultz (2015) discussed the how entrepreneurship is portrayed in the media. This
portrayal can play an important role in how attractive a career or investing option is
perceived. Little literature has been developed about how the media frames ethnic
minority entrepreneurs and how it affects the response and perceptions of the surrounding
community. Achtenhagen and Price-Schultz asserted that a key to community
development is the need for individuals of all ethnicities to be interested in starting a
42
business. The article included suggestions on how community development officials can
assist minority entrepreneurs. The main research question asked if the way that
newspapers communicate creates a supportive environment for ethnic minority
entrepreneurs. The overall findings showed that minority entrepreneurs are
underrepresented in U.S. newspapers. Community development leaders can encourage
minority entrepreneurs by helping them believe they can start a business, creating and
publicizing programs to help minority entrepreneurs, and show the benefits of promoting
minority entrepreneurship in newspapers.
Previous studies have focused simply on why women become entrepreneurs.
Kogut, Luse, and Short (2014) analyzed the variances between female minority and non-
minority entrepreneurs. However, the focus of this study was on a statistical analysis of
the demographic differences and similarities. The authors hoped that the results will aid
in gaining a better understanding of the face of sole owners in regards to gender and
minority relationship. Kogut et al. highlighted research done by another theorist that had
studied the demographics of entrepreneurship. This study was relevant to revealing the
surface of entrepreneurs and as a result uncovering strategies that can help even the
playing field. The results revealed some significant differences between male and female
entrepreneurs. The authors acknowledged that males dominate this field. However, no
recommendations or limitations were communicated.
The choice of becoming an employee versus starting your own business was
explored. Bates and Robb (2013) investigated the motivations of minority and immigrant
entrepreneurs by analyzing viability among urban small businesses. The authors also
43
addressed concerns regarding the barriers that prohibit minority and immigrant small
business owners from dominating in more desirable market niches. The authors found
that most businesses that fail are only serving the local clientele. The authors sought to
gain an understanding of the phenomenon through comparing young firm viability in the
minority-household market niche to nonminority neighborhood markets and a broader
marketplace.
A framework, referred to as the opportunity structure, is a tool that can be utilized
in order to understand an entrepreneurs’ likely potential in a given area. Bates and Robb
(2013) offered a thorough review of small firms in minority and nonminority
neighborhoods. Entrepreneurial success is being attributed to the opportunities available
to a particular individual or group. The authors provided the statistics based on the type
of neighborhood and type of clientele it caters to.
McManus (2016) discussed trends that were found in the 2012 Survey of Business
Owners. The results of the study revealed that only 29% of businesses nationwide are
owned by minorities. The author found that although the number of minority-owned
business has increased, minorities are still underrepresented. The survey outlined several
factors identified as minority entrepreneur issues. The author did not discuss limitations.
The key findings supported the fact the minority firms are vital to the U.S. economy. The
author stated that more research will reveal profitability based on demographics. Any
future research will need to focus on causation.
Mora and Dávila (2014) provided a quantitative study to explore the growing
number of minority entrepreneurs and managerial quality. The researchers based their
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study on the findings of economists and social scientists pertaining to the success of new
minority business ventures. In order to analyze those issues, the authors used the data
from the 2007 Public Use Microdata Sample of the Survey of Business Owners. In one
sample there were newly established businesses of Hispanic, African American, or non-
Hispanic European American-owned businesses. The sample included 84,161 firms.
Though the results derived from this data it showed that all of these groups were over-
represented in businesses that ceased operations.
Although the publication itself is dated in 2014, the data used is from 2007. In
2007, businesses started by African American women had the highest likelihood of
failure. However, since 2012, the number of African American women who have
businesses that survive is four times more than 2007. In other words, the data used for
this study was outdated. The article did not seem to have a specific audience. The
researchers presented useful information considering the inclusion of the empirical
analysis of the likelihood of ceasing operations. The authors also challenged the current
public programs, saying that these differences occurred in spite of a system being in
place. Therefore, this case study can be useful when conducting more current research.
Gap in the Literature
The purpose of this qualitative interview study was to gain a common
understanding of what strategies African American entrepreneurs adopt to increase their
emotional intelligence in Houston, Texas. The majority of the literature review consisted
of data that concentrated on emotional intelligence, situational leadership, and values
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entrepreneurial characteristics. Very little data exists on formal emotional intelligence
training and strategies for African American entrepreneurs (Bagshaw, 2000).
The identified gap in literature represented an opportunity to advance the research
knowledge for new and experienced minority entrepreneurs. Therefore, the lack of formal
emotional intelligence training may have contributed to the high failure rate of African
American entrepreneurs within the initial five years. The gap in literature was a social
change opportunity to advance the research knowledge by interviewing African
American entrepreneurs that voluntarily participated in this study that lead to ongoing
research.
Conclusion
Management has evolved over the past century with various definitions and
interpretations. Emotional intelligence research continues to serve the purpose of
exploring the impact of emotional intelligence on leadership effectiveness. Organizations
have benefited from understanding the importance of emotional intelligence and how it
can aid in healthy organizational culture and increased productivity. However, less was
known about the effect emotional intelligence has on minority entrepreneurs and how it
can provide the opportunity for growth. There was a gap in understanding the
possibilities of utilizing emotional intelligence to increase revenue in minority
entrepreneurs.
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Chapter 3: Research Method
The purpose of this qualitative interview study was to gain a robust common
understanding of what strategies African American entrepreneurs in Houston, TX adopt
to increase their emotional intelligence and remain in business beyond an initial 5 years.
By gaining an in-depth understanding of the experiences of current minority
entrepreneurs, the failure gap for others in the future may be reduced, which ultimately
may help more new small business owner be more successful. I purposely sample 15
African American entrepreneurs in Houston, TX, with open-ended questions in
semistructured interviews to gain a common understanding of their levels of emotional
intelligence and how emotional intelligence has impacted their success.
The research findings from the study have a potential implication of positive
social change in the lives of people of Houston, TX. Positive social change is possible as
the data collected in the study could help to address the underrepresentation of mature
African American entrepreneurs in the small business sector in Houston, TX. The data
can potentially help lead to a shift in paradigm as it could affect policy makers to advance
programs to develop emotional intelligence, which could lead to a decrease in the failure
rate of minority entrepreneurs. Any new standard developed would help serve as an
initiative towards the development of entrepreneurial skills and attitude.
Research Design and Rationale
Although there are several research approaches that are feasible for exploring
concepts such as emotional intelligence and leadership styles, a qualitative interview
study was the most appropriate for identifying and interpreting how the level of
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emotional intelligence in African American entrepreneurs has affected the sustainability
of their businesses. Edwards and Holland (2013) asserted that a qualitative interview
study can help the interviewee as well as the interviewer learn more about certain aspects
of themselves and others. The findings of the qualitative interview study might assist in
understanding the aspects of emotional intelligence development in African American
entrepreneurship and the strategies used to foster that development. In this study, I asked
in-depth, open-ended interview questions that generated responses that uncovered
important themes, categories, and subcategories. I used these interview questions (see
Appendix F) to interview 15 African American entrepreneurs.
This study was focused on answering one research question:
RQ: What are the common understandings of the strategies African American
entrepreneurs in Houston, TX, adopt in order to increase emotional intelligence
such that it contributes to them remaining in business beyond the initial 5 years?
Answering this question added to the existing body of knowledge. It required
synthesizing, collecting, and interpreting individual perspectives and experiences. The
results of these findings may add value and contribute to an increased level of emotional
intelligence and longevity for African American entrepreneurs, which would positively
impact the U.S. economy (Smith & Tang, 2013).
Yin (2014) stated that qualitative research methodology has various approaches
including ethnography, phenomenology, grounded theory, narrative, and case study.
Ethnography can be described as a systematic description of a group of individuals by
util